Paying Off Mortgage Early – What Could Go Wrong?

Paying Off Mortgage Early – What Could Go Wrong?

Paying off mortgage early is a financial decision at some point most homeowners will confront in their lifetime. The decision to pay off mortgage early is a very simple decision to make. The problem arises when we truly get down to making additional payments every single month. This may start off well but for most of us the system is designed to work against us and we end up stop making the additional payments.

Imagine for a second what your would life be like, if you did not have to send a check each month to mortgage company and you get to keep the complete mortgage payment for yourself. I know personally my life changed forever. Let’s assume again that you had tens of thousands of dollars left over after paying all your bills and you the option of living your dream lifestyle. Would you worry about spending additional money of paying additional to watch a mortgage each month?

For me, I won’t. Since I have so much money obtainable why would I use the additional money towards paying off my mortgage if I knew with certainty that i had an endless supply of money forever. The point I am trying to make is the amount of money we have at the end of each month determines the financial decisions we make. I know this sounds obvious. But let’s analyze this for a second. Most of us plan our finances based on short-term needs and long-term needs. And in the long-term two things matter.

Savings for retirement, and making sure that we have enough cash in retirement to last us by the retirement years. So would you pay off your mortgage early as a strategy for retirement? And this is where it gets tricky on whether you should pay off your mortgage. Using the additional money and paying off a mortgage faster we will end up with no debt in retirement but little less saving. And the flipside is that you would save thousands of dollars in mortgage interest and don’t have to use your retirement savings pay for your mortgage.

This is risk-free decision if you pay off your mortgage. And most financial advisers would recommend that you invest your money instead of paying off your mortgage early. You should be in a better position when you retire already though you may have mortgage debt. And the risk is that the stock market will continue to go up and you will end up with a far higher return than paying off your mortgage. Both methods have its merits. But you have to choose one over the other because you have limited cash at the end of each month.

And I want to make this decision is easy for you to make this possible. There is a new technique called mortgage speeding up that helps you slash 13 years of your mortgage and save thousands without you changing your lifestyle of spending more. This method uses a home equity line of credit as a tool to pay off your mortgage faster without spending more money. So you don’t have to choose between investing or paying off your mortgage early.

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